Speed of Adjustment to Selected Labour Market and Tax Reforms

Tax reforms under market distortions in product and labour markets

Using a two-agent model comprised of capitalists and workers, this paper examines the importance of imperfect competition in product and labour markets in determining the welfare effects of tax reform. The reform considered consists of eliminating the capital tax alongside a concurrent rise in the labour tax. In contrast to the perfectly competitive model, models with product or labour market f...

Interactions between Product and Labour Market Reforms.∗

Labour market reforms face very often opposition from the employed workers, because it normally reduces their wages. Also product market regulations are regularly biased towards too much benefitting the firms. As a result there remain many frictions in both the labour and product markets that hinder an optimal functioning of the economy. These issues have recently received a lot of attention in...

Tax and Benefit Reforms in a Model of Labour Market Transitions

Analyzing tax reforms using the Swedish Labour Income Microsimulation Model

Labour income taxation is a central policy topic because labour income makes up the majority of national income and most taxes are in the end taxes on labour. In order to quantify how behavioural responses of labour income earners a ect tax revenue, the Swedish Labour Income Microsimulation Model (SLIMM) is constructed and used to evaluate tax reforms. The model simulates taxable income respons...

Labour Market Adjustment: Evidence on Interstate Labour Mobility

participants in a seminar at the Reserve Bank of Australia for valuable input. The views expressed in this paper are those of the authors and not necessarily those of the Reserve Bank of Australia. Use of any results from this paper should clearly attribute the work to the authors and not to the Reserve Bank of Australia.